Banking News.

[Kothari]

In a move aimed at arresting the rise of non performing assets on bank balance sheets, the Finance Ministry, along with the RBI, is planning a regulatory overhaul of guidelines governing NPA recognition. This move will also postively impact the bearish sentiment on banks in the equity markets. 

SAVING BANKS

ARRESTING NPAs

REGULATORY OVERHAUL IN BANKING

CHANGE IN RESTRUCTURING NORMS 

Sources

--Govt looking to change restructuring loan norms for banks

--Change in restructuring norm likely through RBI circular

--Likely to allow one-time restructuring of infra loans without provisioning

--Restructuring likely without provision for projects delayed due to extraneous factors: ET NOW 

--Tenure of debt increasing for a project may not be seen as restructuring of loan anymore: ET NOW 

--Restructuring without provision to be based on third party certification

--RBI or Banks' audit team to certify proj for restructuring without provision: ET NOW 

--Restructuring without provision will be a pure commercial decision of bank: ET NOW 

--Projects worth Rs 1.50 lk cr to benefit from the change in restructuring norms: ET NOW 

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Thanks & Regards,
Abhishek Kothari
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